IBEC - Newsroom

IBEC, the group that represents Irish business, today said that the latest CSO figures from the industrial sector show that output recovered strongly in the first quarter of the year. IBEC said this growth in manufacturing was further evidence of economic recovery.

Commenting on the CSO numbers, IBEC senior economist Fergal O’Brien said: "This is a further indication that the volume of output in the wider Irish economy is now growing again. Industrial sector production was up 6% on the first quarter of 2009 and, on a seasonally adjusted basis, increased 15% on the final quarter of 2009.

"While the high-tech sector has clearly led the recovery, output from the traditional sector has now recorded two successive quarters of growth, albeit coming from a very low base. Traditional sector output therefore remains 3% below that of quarter 1 2009.

"Despite the improvement in volumes, price pressures remain a big problem for Irish manufacturers. Output values were 11% lower than in the first quarter of last year, with prices actually under more pressure in the high tech sector than in traditional manufacturing. Turnover in the food sector, in particular, has benefited from the pick-up in global commodity prices. Nevertheless, cost and competitiveness pressures remain a significant threat to the manufacturing sector."